inheritance tax

American  

noun

1. a tax levied on the right of an heir to receive a decedent's property, the rate being a percentage of the value of the property.

---

inheritance tax British  

noun

1. (in Britain) a tax introduced in 1986 to replace capital transfer tax, consisting of a percentage levied on that part of an inheritance exceeding a specified allowance, and scaled charges on gifts made within seven years of death

2. (in the US) a state tax imposed on an inheritance according to its size and the relationship of the beneficiary to the deceased

---

Etymology

Origin of inheritance tax

First recorded in 1835–45

Example Sentences

The second thing to note is that six U.S. states — Iowa, Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania — levy a state inheritance tax.

From MarketWatch • Jun. 17, 2026

A handful of U.S. states do impose an inheritance tax on certain inherited assets, although most offer exemptions or reduced rates for close relatives like children.

From MarketWatch • Jun. 16, 2026

The bank said the funds will be exempt from inheritance tax and income tax.

From BBC • May 19, 2026

His tenure has been marked by numerous U-turns on issues big and small, from whether to issue national ID cards to an inheritance tax on farmers.

From The Wall Street Journal • May 8, 2026

We will have national woman suffrage, national prohibition, continuing inheritance tax, continuing income tax, national life insurance, an increasing grip upon the railroads, their finances and their operation as well as their rates.

From Letters of Franklin K. Lane by Wall, Louise Herrick

Related Words

• death tax
• estate tax